Let's take a moment to give some kudos to these guys for already having removed 200 sprites.
I know removing isn't really the goal here but it sure doesn't hurt to remove all these minor edit and UberASM tool sprites.

I'd argue that it doesn't: if they're part of a pack it's harder to find a spesific sprite (both in general and through the site's filters) and it means it's more likley for the section to get colged up with too similar sprites, if for example someone made a Hammer Bro sprite and put it in a pack, while someone completly diffrent made their own and submited it standalone.

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1. It means that if there are several similar themed sprites you want to download, then you can download a sprite pack instead of say 10 different sprites, much faster.
2. Having sprite packs means that similar themed sprites are not clogging up the download list, making it easier to navigate.
3. For sprites that share resources such as GFX files, having them in a pack keeps them better organized since you only end up downloading a single GFX file instead of multiple GFX files.

None of those have anything to do with your original argument of them being more easily searchable, so given that you dropped that we can assume that you know you're wrong, right?

As for the rest of those arguments: mighty irrelevant.
1. We could bundle every single sprite that came from an official Mario game in the section into one submission and wow it'd be just one download for all of them, but it'd also be impossible to search for them individually if you didn't know this one giant pack existed, along with wasting both your and SMWC's bandwidth.
2. A section can by definition not be "clogged up" by the very thing it exists to let you download. We have no reason to aim for a small list. On top of that, filtering exists for a reason.
3. That is an argument you can only make on the assumption that everyone will want to use those sprites together, meaning it's not an argument for or against splitting them up to begin with. Should we also include Hammer Bros. graphics in every submission in case people want to use those with the sprite together?

2. A section can by definition not be "clogged up" by the very thing it exists to let you download. We have no reason to aim for a small list. On top of that, filtering exists for a reason.

I absolutely want to emphasize this point, since the whole logic behind the original argument is really circular and kinda nonsensical. I mean, the only reason a "clogged up" sprite section could be bad would be if you had to read every single description, so that fewer downloads = better, but the only reason you would ever have to read every single description would be if all sprites were inside sprite packs, so you wouldn't know where your sprite was without reading the descriptions of all the sprite packs, so if the sprites weren't in packs to begin with and you could just easily search for them via the filters, a "clogged up" section wouldn't be a problem to begin with, thus the only times when sprite packs are ever useful are when you use sprite packs, which of course is circular logic and doesn't make any sense.

At the time I wanted to use pendulum ball n' chains, I didn't know what to search for to get the pendulum sprites until I made a thread about it. Now I can search "Ball N' Chain" and it actually comes up now.

tl;dr packs don't help if you have no prior knowledge about it already